Hair Business Pricing Guide - Best Way To Pricing Your Hair Products (Bundle, Closures & Frontal And More)
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Author : Travo
Update time : 2021-11-16 20:48:21
Pricing your hair extensions and hair product is super easy, use this below equation and you will always be able to determine exactly how much you should be charging your customer. take the cost of the product, plus the cost of international shipping, plus the cost of packaging(meaning the packaging that you plan to send your hair extensions to customers in) plus the cost of shipping that you plan to charge your customers, plus your desired profit(meaning the profit that you plan to make from every sale) and that should give you exactly how much you should be charging your customers. sales tax will vary depending on which state you live in. processing fees will vary on which payment processor you are using. once you figure out how much your payment processor will be charging you to accept payments, then you can go ahead and corporate that into the equation as well as how much sales tax would be that can also be factored into the equation. that can better help you determine how much you should be charging your customer.
Because sales tax and payment processor fees will vary depending on the state that you live in and the payment processor that you are using, for the sake of this article, we're going to do the equation without those two variables. for example, your vendor charges you 60 bucks for a 12-inch straight hair bundle, imagine that international shipping is 46 bucks. your cost of the packaging is 5 bucks and your desired profit is 60 bucks. then incorporate shipping cost to your customer, we'll say that that is 11 bucks, once you add all of those together, you are left with 182 dollars and that is going to be the price of the 12-inch straight hair bundle. and that is what you will charge your customers. in this instance, you would keep 60 bucks, and the remaining cost would go to your vendor. that is if you are not purchasing in bulk. keep in mind that purchasing in bulk whenever it comes to hair is going to help you cut down on costs. it also enables you to possibly make more profit. the more bundles you order, the less expensive your cost will be. you can expect international shipping to be anywhere from 30 to 55 dollars. if you purchase in bulk, you will notice that you only have to pay that international shipping cost at one time.
If you cannot afford to purchase 10 bundles at a time, your vendor may allow you to do the pre-order option and that's ordering with your vendor every time a customer orders with you. if you decide to take that route, you will need to consider incorporating the cost of international shipping into your customers' costs. let's say you buy ten bundles of the 12-inch bundle would be $600, $600 plus $46, which is your International shipping equals 646 dollars. this is the total cost for ten bundles.
Let's plug 646 into the equation: cost the product plus the cost of international shipping is 646 dollars, plus packaging which is five dollars, plus desired profit which is going to be eighty dollars, plus the shipping to your customer which is eleven dollars and that leaves you with seven hundred forty-two dollars, take 742 and divide it by ten. we are aiming to find the cost of one individual bundle, since we purchased ten bundles, to find the cost of one bundle, we're going to need to take 742 and divide it by ten. round it up to seventy-five dollars per individual bundle. that is what you will charge your customer for one bundle.
If we compare this equation and the first equation that we did, as you can see, your profit is higher when you purchase in bulk and you were able to charge your customer less. there are benefits to purchasing in bulk. however, if you cannot afford to purchase in bulk, then you have the option of also buying individual bundles. we hope that equation makes sense and again remember to factor in processing payment fees as well as state tax. and that will be how you find out how much to charge a customer every single time.
There are also product pricing calculators online as well, if you get on google and type in product pricing calculator or how much should I press my product, you should be able to find a product pricing calculator and that will also help you figure out how to price your product if you do not feel like dealing with the equation that we've given you.